Criteria for Market Segmentation Term Paper Example | Topics and Well Written Essays - 1500 words

Criteria for market place Segmentation - Term Paper ExampleIn recent classs studies have been made to improve these demographic variables so that they can be more effectively handlingd. Example of the companies who make effective use of demographic sectionalization are Lego, Toys R Us, and the early learning centre who not only substantiate the differences between children of various term group but as well design their products for highly peculiar(prenominal) delineate age categories (Richard M. S. Wilson, 2005). Age segmentation is an most-valuable tool for segmenting the consumer market. A variety of terms are apply to refer to various age groups. Examples are newborns, infants, young children, tweens, teens and young adults also called Generation Y in United States of America ( regular army), Adults or Generation X and the baby boomers or the Seniors. Various studies have been conducted which age group consume exactly how much and has influence on how much expenditur e. For example in USA the total population of tween, the children aged 9-12, this age group spend $20 billion in an year and further influence the consumption of $ 200 billion. To cater to their brings brands like Limited design raiment that are more fun like teens. In this each age segment has different specific need in everything ranging from basics like food and clothing to entertainment etc (Charles W. Lamb, 2010). Sex is another great market segmentation tool that helps in helps designing the product and services according to the specific need of the consumer. The segmentation on the basis of gender is most useful in clothing, apparels, and accessories etc. The most unvarnished example is completely different range of toiletries and perfumes for males and females. Now a days gender segmentation is raze visible in mobile phones with varying skins for each gender. A common basis of segmenting the consumer market is income. Income is an classical determinant of consumption p attern. Companies design their product features, define prices and determine positioning strategy base on the income of the target market. Example of this segmentation is HLL different washing powders sunlight, Wheel, Rin and Surf Ultra for different market segments based on income (Saxena, 2008) Profession and education are also important determinants of market segment. Education level defines perceptiveness not only in books but various other consumer goods. For example highly technical and quaternary featured mobile phones are popular among highly educated people whereas basic phones are more popular in less educated people that fulfill their needs. Young executives and business professional also pick out multi features internet enabled cell phones that can cater to their mobility needs. Family size and marital status also defines consumption patterns. Single male and females spend more on their personal needs such as slimming equipment, cosmetics items etc and prefer fast foo d (Johan Botha, 2004). Nationality and religion also play an important role. For example Hall food for Muslims and Kocher for Jews is an important segment. Nationality also defines our tastes in food, clothing and preferences for entertainment etc. Geographical Segmentation Geographic based segmentation splits the market on the physical location of the potential consumers. This segmentation is based on the assumption that consumer keep in close geographic proximity has some similarities in their needs and preferences f